Hotel and restaurant owners, many of whom repurposed their properties during the pandemic, need to prioritize risk management protocols even as some rate increases level off, experts say.
As the hospitality sector moves toward recovery, many property owners still face challenges, such as lower occupancy rates and labor shortages, that can exacerbate losses.
Greater use of technology by hotels and restaurants has also heightened scrutiny of their cybersecurity controls.
Hub International Ltd. predicts that property/casualty rates for both restaurants and lodging establishments will rise as much as 20% this year, because of cyber rate increases.
While some property rate increases will level off and single-digit liability rate increases are possible for standard risks, cyber placements are driving pricing for hospitality risks, said Kimberly Gore, Myrtle Beach, South Carolina-based national practice leader of Hub’s hospitality specialty practice.
The hospitality industry is “technology dependent” with features like online payment and reservation transactions and digital key access, Ms. Gore said.
If an account has controls in place and is proactive about…
